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The validity of a Memorandum of Understanding (MoU) between the Transparency International Pakistan and Port Qasim Authority is in question, as the latter's Board has made the Authority accountable for soliciting advice from a private entity, like TI Pakistan.
The PQA Board, while reviewing the 'urgent' matter of hiring a tug and pilot boats for Port Qasim in a special meeting on July 23, observed that the port operator was not supposed to seek guidance from TI Pakistan. Sources privy to the meeting told Business Recorder that the seven-member Board was appreciative when Farooq Hadi, Consultant, Farooq Hadi Associates, questioned PQA over referring its cases to TI Pakistan for advice.
Another member, Farooque Rahimtoola, Director of Rahimtoola group of companies, backed the view, maintaining that the Board had long been asking the PQA authorities for a rationale to do the same. PQA sources told Business Recorder that the Authority was bound to refer its procurement cases to TI Pakistan under a pact signed between the two on March 7, 2006. The agreement was signed between Adil Gilani, TI Pakistan vice chairman, and Secretary PQA Afsar Din Talpur.
The board members, however, are said to have refused to buy the argument, contending that the MoU was singed for the three months from its date of signing, and was, therefore, no more valid.
"The memorandum has lapsed... this practice is undermining the position of the Board," sources quoted Rahimtoola as telling the Board. Backed by the entire Board, the member opined that referring those cases to the international watchdog, TI Pakistan, which were already decided by the Board, was not acceptable.
The Board's claim stands right as suggested by clause 3 of the TI Pakistan-PQA MoU that says: "In accordance with the proposed pact TI Pakistan will provide experts' services (free of cost) for three months beginning from March 7, 2006, which may be renewed on mutual understanding."
TI Pakistan Chairman Adil Gilani, however, thinks other way round. "The MoU may never lapse as we are working with PQA under the PPRA rules and not the MoU," he told Business Recorder, arguing that the memorandum was to ensure the implementation of Integrity Pact, which is an anti-corruption pact and mandatory under PPRA rules.
Gilani said it was agreed that TI Pakistan would prepare a "Procurement Manual" for PQA and would continue to monitor the implementation of the rules of Public Procurement Rules Authority 2004. "PQA, in many cases, does not follow PPRA rules; so we keep advising them," the Transparency International Pakistan chief claimed.

Copyright Business Recorder, 2010

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